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Arcadia Healthcare Solutions Announces $30MM New Investment

Merck Global Health Innovation partners with GE Ventures and existing investors to scale leading healthcare data and advanced analytics company

BURLINGTON, Mass.– Arcadia Healthcare Solutions (“Arcadia” or the “Company”) announced today that the Merck Global Health Innovation Fund (“Merck GHI”), GE Ventures, and existing investors Peloton EquityZaffre Investments, and Morgan Stanley Alternative Investment Partners have invested $30 million of growth capital in the Company.

With over 60 enterprise customers, Arcadia is a leading healthcare data aggregation and analytics technology company with a focus on serving ambulatory networks affiliated with large payer and provider organizations, including health plans, accountable care organizations, integrated delivery networks, and large independent physician groups, among others.

Arcadia’s technology and services enable its customers to successfully drive value-based performance management programs as American healthcare shifts to a new paradigm. Arcadia is led by chief executive officer Sean Carroll, a longtime executive with over 25 years of experience in the health IT industry.

“Having Merck GHI and GE Ventures join existing investors in this round of growth capital is the optimal outcome for us,” said Carroll. “The rigorous process expands our team of blue chip investors who actively support their companies’ growth plans.”

“Arcadia fits perfectly with our initiatives supporting the transition to value based care. Arcadia’s deep expertise in transforming isolated data into critical insights that enable providers to close gaps in care and enable better outcomes is central to our investment hypothesis around Population Health,” stated Joel Krikston, Managing Director at Merck’s Global Health Innovation Fund.

“GE Ventures is excited to back Arcadia in becoming an industry leader to help payers and providers apply advanced analytics to their business models. We’re especially proud to invest in this highly experienced Boston-based team, which is now home to GE’s headquarters,” said Noah Lewis, Managing Director of healthcare at GE Ventures.

The investment allows the company to accelerate its robust product development plans in the core Arcadia Analytics platform and expand population health management market activities across the country. While the company will continue to focus on organic growth, Arcadia has made two successful acquisitions since its founding—Concordant, an EHR support services company in 2011 and Sage Technologies, a managed care services company in 2015.

“Our transformation from a proven consulting firm to a recognized, technology-led population health analytics company is complete as noted by industry experts such as KLAS ResearchGartner, and Chilmark Research,” said Carroll. “We see a bright future for our customers, investors, and team members.”

The capital raise process was managed by Robert W. Baird and supported by counsel Goodwin Proctor.

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About Merck Global Health Innovation Fund

Merck Global Health Innovation (GHI) Fund (www.merck.com/ghi) invests in emerging companies that deliver breakthrough healthcare solutions which advance Merck’s mission to discover, develop, and provide innovative products and services that save and improve lives. Established in 2010, the GHI Fund deploys its evergreen $500 million fund to rapidly identify and develop transformative global health care opportunities. GHI is focused on identifying opportunities that are adjacent to Merck’s core business of pharmaceuticals and vaccines.

About GE Ventures

GE Ventures (www.geventures.com) is committed to identifying, scaling, and accelerating ideas that will make the world work better. Focused on the areas of software, advanced manufacturing, energy, and healthcare, GE Ventures helps entrepreneurs and start-ups succeed by providing access to GE’s technical expertise, capital, and opportunities for commercialization through GE’s global network of business, customers, and partners. GE Ventures offers an unparalleled level of resources through its Global Research Center, including: 35,000 engineers; 5,000 research scientists; 8,000 software professionals; as well as 40,000 sales, marketing, and development resources in over 100 countries.

About Peloton Equity

Peloton Equity, LLC (http://www.pelotonequity.com) is a newly-formed private equity firm that focuses exclusively on growth capital investments in the lower middle market of the healthcare industry. Peloton’s portfolio includes HealthPlanOne, a leading technology-enabled digital marketing firm specializing in Medicare and individual and family health insurance sales and distribution. Peloton leverages its extensive healthcare network, value-building diligence and investment process, and portfolio management playbook to add value to its portfolio companies. Peloton seeks companies with between $20 and $200 million of revenue and the management team, market opportunity and business model to grow revenues meaningfully over the life of its investment.

About Zaffre Investments

Zaffre Investments, LLC (http://www.zaffreinvestments.com/) is a wholly-owned subsidiary of Blue Cross Blue Shield of Massachusetts that is committed to adding value through investments in new products, services and technologies that aim to improve the way healthcare is delivered and received. Zaffre focuses on companies across the healthcare landscape, with a primary focus on ACOs, consumer solutions, health information technology, and behavioral health. The firm is stage agnostic, considering a company’s financial and market positions, capabilities, and core values, as well as their missions and visions for the future. Zaffre employs a true partnership model for its portfolio companies, providing strategic direction, business support, industry connections and more.

About Morgan Stanley Alternative Investment Partners

Morgan Stanley Alternative Investment Partners (http://www.morganstanleyaip.com), part of Morgan Stanley Investment Management, specializes in assisting institutional and high net worth investors achieve their goals through the design and management of alternative investment programs. Established in 2000, Morgan Stanley AIP currently has approximately $36.4 billion in assets under management and advisement.

About Arcadia Healthcare Solutions

Arcadia Healthcare Solutions (http://www.arcadiasolutions.com) is an EHR data aggregation and analytics technology company supporting ambulatory networks taking on risk and transitioning to value- based care. Arcadia specializes in integration of data from over 30 EHR vendors, enriching it with claims and operational data, and using that data to drive improvements in patient care quality, practice efficiency, and financial performance. Trusted by independent provider groups, health plans, and integrated delivery networks nationwide, with expertise in both fee-for-service optimization and value- based performance environments, Arcadia supports providers with the benchmark data, insights, and outsourced services to excel in the evolving landscape of American healthcare. Founded in 2002, Arcadia is headquartered outside Boston in Burlington, MA, with offices in Seattle, Pittsburgh, and outside Chicago in Rockford, IL.

January 6, 2017 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 10 blogs containing over 8000 articles with John having written over 4000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 16 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit and LinkedIn.

Exostar Receives Additional $10 Million Investment from Merck Global Health Innovation Fund

Commitment Reflects Impact of Exostar’s Mission, Vision, and Solutions on Life Science and Healthcare Industries

HERNDON, VA, October 27, 2015Exostar, whose cloud-based solutions help companies in aerospace and defense, life sciences, and healthcare mitigate risk and solve their identity and access challenges, today announced an additional $10 million investment in its life science and healthcare business from the Merck Global Health Innovation Fund (Merck GHI).  Merck GHI has $500 million under management and provides growth capital to emerging healthcare technology companies worldwide.

Merck GHI’s investment will allow Exostar to enhance and expand its HIPAA-compliant solutions that help pharmaceutical companies, healthcare providers, and others in the industry securely, productively, and compliantly collaborate with one another to develop new drugs and therapies and deliver the best possible patient care.  Exostar’s innovative information security solutions – such as the cloud-based Secure Access Manager (SAM) for federated identity and access management with web-based single sign-on – protect sensitive data and intellectual property while promoting the ongoing migration to partner-centric research and development and digital health.

The latest round of funding follows a $5 million investment by Merck GHI in October 2014.  Over the past year, Exostar’s life science and healthcare community has grown to over 1000 global organizations who rely on SAM to securely access applications, exchange information, and conduct business.  The company also launched its ProviderPass solution that supports leading health IT vendors and healthcare providers with compliant electronic prescribing of controlled substances.

“We believe that data will be the currency in healthcare and serves as the foundation for innovation,” said Richard Addi, Exostar’s President and CEO.  “We also understand that data compromise can render that currency worthless, or worse.  Life science and healthcare companies need a partner whose information security innovations and solutions not only protect scientific advances and patient information, but also enable organizations to accelerate how they do business.  Exostar is that partner, and we are pleased Merck GHI has chosen once again to support us.”

About Exostar

Exostar’s cloud-based solutions help companies in highly-regulated industries mitigate risk and solve identity and access challenges.  Nearly 125,000 organizations leverage Exostar to help them collaborate securely, efficiently, and compliantly with their partners and suppliers.  By offering connect-once, single sign-on access, Exostar strengthens security, reduces expenditures, and raises productivity so customers can better meet contractual, regulatory, and time-to-market objectives.  www.exostar.com.

October 27, 2015 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 10 blogs containing over 8000 articles with John having written over 4000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 16 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit and LinkedIn.

CareSync Secures $18 Million in Series B Funding

Investment to support rapid expansion, reinforce market-leading position

TAMPA, Fla.—October 7, 2015CareSync, the leading provider of software and services for chronic disease management, today announced it has secured $18 million in Series B funding. Round participants include the Merck Global Health Innovation Fund (Merck GHI), Greycroft Partners and Harbert Venture Partners, as well as existing investors Tullis Health Investors, Clearwell Group, CDH Solutions and Travis Bond. The funding will help CareSync expand to meet demand for its services-enabled technology platform, strengthening its leading position in the emerging patient-centered care coordination market.

CareSync’s user base has grown 20-fold in the last four months, fueled in part by the Centers for Medicare & Medicaid Services’ (CMS) chronic care management program, which encourages doctors to work with patients between visits. The program has an annual estimated value of $17.25 billion. CareSync’s direct-to-consumer business has also increased due to healthcare consumerization driven by patients wanting greater and more convenient access to their doctors and health information.

In response to the increased demand for its platform and services, CareSync will use the investment to expand its workforce and continue to advance its best-in-class technology. Over the next 18 months, the company plans to hire an additional 500 employees.

“CareSync’s pioneering approach to patient-centered care puts it in the perfect place to take advantage of a significant market opportunity,” said Ian Sigalow, founder and partner at Greycroft Partners. “The company’s commitment to going above and beyond to improve outcomes by connecting patients, doctors and data are qualities we value. We’re pleased to support CareSync and look forward to accelerating its growth as it demonstrates a better way to coordinate care.”

CareSync’s application and services collect, organize and share health information for patients, their doctors and caregivers. Central access to this data makes it easier for patients to manage their health, especially those who have chronic diseases and need to regularly see multiple doctors. CareSync also helps providers collaborate with patients and more easily complete the requirements for Medicare’s chronic care management program so that they can bill CMS for these services.

“Our country spends 86% of its healthcare budget on treating chronic disease, which we could decrease by getting people on the same page about a patient’s care,” said Travis Bond, founder and CEO at CareSync. “That’s why we’re leading the mission to simplify the healthcare experience for everyone involved. With this investment, our team is excited to embark on CareSync’s next chapter of growth as we continue to arm patients and providers with the personalized data they need for better outcomes and lower costs.”

CareSync’s revenue has increased by nearly 100% month-over-month in 2015. As a result, the company continues to expand its platform and now serves more than 100 locations that care for more than 300,000 chronically ill Medicare beneficiaries. CareSync was recently a finalist in the SXSW 2014 Interactive Awards, voted most promising startup at the Healthcare Information and Management Systems Society’s (HIMSS) 2014 conference, selected to participate as one of the innovative startups in TEDMED Hive in 2014 and tapped to present its application on the main stage at Health Datapalooza 2014. In 2015, the White House recognized CareSync’s chief operating officer, Amy Gleason, RN, as one of nine “Champions of Change” for its national precision medicine initiative.

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About CareSync
Founded in 2011, CareSync is the leading provider of software and services for chronic disease management, combining technology with 24/7 nursing services to facilitate care coordination among patients, family and caregivers and all providers. CareSync provides turnkey Chronic Care Management services as well as a software-only option, allowing practices of any size to easily meet the billing requirements for CPT code 99490. Additionally, CareSync’s certified technology makes it simple for providers to meet Meaningful Use 2 for Data Exchange, Messaging and Timely Access. CareSync patients are at the center of their healthcare, with access to health information, actionable goals, and Comprehensive Care Plan tasks. As a result, CareSync’s patients are experiencing more productive medical appointments and better health outcomes. For more information about CareSync, visit www.caresync.com/ccm.

October 7, 2015 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 10 blogs containing over 8000 articles with John having written over 4000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 16 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit and LinkedIn.